Darling 'to make tax turn'

THE government is preparing to announce a major U-turn over its controversial changes to capital gains tax, the Tories are claiming. Chancellor Alistair Darling's plan to axe taper relief has run into fierce criticism from business.

THE government is preparing to announce a major U-turn over its controversial changes to capital gains tax, the Tories are claiming.

Chancellor Alistair Darling's plan to axe taper relief has run into fierce criticism from business.

Forced to answer an emergency Commons question, Mr Darling acknowledged a `wide range' of representations had been made to him by a number of organisations and individuals.

"Because these proposals cover a wide range of approaches, and in some cases are quite complex, I think it is desirable to have further discussions with these groups before I finalise my proposals," he said.

"It is not now going to be possible to conclude that process until the New Year."

Shadow chancellor George Osborne said Mr Darling would soon announce a `major U-turn' on the policy and hailed this as the `final humiliation' for the Chancellor.

Reform of CGT was announced by Mr Darling as part of his Pre-Budget Report in October. It increasd the level of tax a business person has to pay upon sale of a business from 10 per cent to 18 per cent, prompting fury from business lobby groups.